Hmmm,,,& during video when i am zooming in does it get blurry or does it stay clear?

well keep in mind video is not the primary focus of a digicam, so there are some drawbacks to using them versus a camcorder. the AF on most digicams struggles to keep up with the zoom during video, so you may see it go out of focus for an instant. also, those that do allow audio during zooming, you will most likely hear the zoom mechanism in the audio track.

Based on the answer you provided (thank you!) I would suggest you look at the Canon SX-120 it will give you 10X optical zoom, good automation, a good flash, but it does not have HD video and you cannot zoom while recording video. The Sx-120 sells for $199. The Canon SX-200 is near the top of your budget at $299.

Another camera worth looking at is the Sony H-20, which really has a lot of feautures. It has the best automatic system in the compact zoom niche, the best Flash Range (the distance from camera to subject expressed in feet) of 20 feet when using Auto ISO. It has HD video and you can zoom while filming. The Sony H-20 sells for $225 to $235.

The Panasomic ZS3 is an excellent camera with many features but with an average price of $274 it is near the top of your budget. It does have a nice wide angle, 12X optical zoom, HD video, and you can zoom while filming, it is a marvelous camera outdoors, but due to its very small and very weak flash its indoor performance using the buil-in flash is very poor.

The Panasonic ZR1, that Hards mentioned, sells for an average price of $250, has 8X optical zoom but it does not have HD video, and it shares the same small, weak, built-in flash that is found on the Panasonic ZS3.

Based on this selection, I think that the Sony H-20 is your #1 choice followed by the Canon SX-200, or SX-120.

the Sx-120 is off the list because of the lack of HD video. The sx200 i would knock off too because she seems to want zoom during video.

the H20 is a great camera, but i think it's size is pushing the limits of what i would imagine the op would want to carry everywhere for friends photos and such for facebooking, etc. It is twice the thickness, half again as heavy and is of a less pocketable shape than the the ZR1 or the Samsung.

And the ZR1 does in fact have HD video, and a rather good implementation of it as well.

Thanks you two for all the great help
I needed it!
But one more quick question!
On the canon...when you are reviewing your videos..
Does it have audio on the camera?
Or can you only hear it on the computer?
& do you think the new nikon coolpix is a good camera?